If you are interested in investing in The Barn Co-operative Network, then please read through the detailed FAQ below to see if this investment is for you. Please do not hesitate to contact us if you have any additional questions.


Q1. Why are there investment options in the Barn Co-op?

In a nutshell, to raise seed capital for major acquisitions and major projects designed to get the co-op up and running. The Co-op was able to purchase the Barn proper and the adjacent property due to the generosity of multiple investors. The next major acquisition is the Market itself, the highly successful grocery located on the ground floor of the barn.


Q2. What investment opportunities are available to interested parties?

The Barn Co-op has issued 2000 Preferred Shares valued at $100.00 each. Investors can purchase up to 199 shares. The shares are classified as a Socially Responsible Investment (SRI).


Q3. What is a Socially Responsible Investment?

A socially responsible investment, also referred to as sustainable, socially conscious, “green”, or ethical investment is any investment strategy that seeks to consider both financial and social good. Socially responsible investors are looking to promote social concepts and ideals that they feel strongly about but also want to invest successfully.


Q4. What “social good” is associated with the Barn Co-op’s Preference shares?

The principles of the Barn Co-operative are founded upon sustainable, local, organic food sources free of pesticides and GMO’s. Additionally, every activity in the Co-op must ultimately be Planet Friendly and associated with overall wellness, whether nutritionally, physically, or spiritually. An investment in the Co-op will help us grow and foster a healthy, connected and sustainable community. Your investment will directly benefit local growers, artisans, entrepreneurs and like-minded community members who share a greater vision of social good and a healthier Planet.


Q5. What “financial good” is associated with the Barn Co-op’s Preference shares?

An annual return of 5% on the face value of your total investment paid annually throughout the life of your investment. Additionally, our shares provide a hedge against volatile markets. The value of each share is pegged at $100.00, regardless of changes in the stock markets and interest rates.


Q6. What is the first step in the investment process?

Firstly, you decide how many shares you will purchase. The maximum number of shares in any family unit is 199 shares valued at $19,900.00 . You will sign a Preference Shareholder Agreement in which you will articulate the number of shares you are purchasing.


Q7. Can my wife and I each purchase $15,000.00 worth of shares?

No. The maximum number of shares in each family unit is 199 valued at $19,900.00. You could purchase 100 shares ($10,000.00), but your wife would be limited to 99 additional shares ($9,900.00) in order to keep the maximum in the family at or below $19,900.00.



Q8. How do I pay for the shares?

There are two methods: (a) through a cash purchase; or (b) through an RRSP transfer.


Q9. What are the advantages of each payment method?

A cash purchase is relatively simple – decide how many shares you want and write a cheque for the total amount. But be aware that the annual dividend (5%) is taxable under the rules of the Canadian Revenue Agency (CRA). Each year we will issue a cheque to you for the gross amount. You will be responsible for declaring your investment income on your annual CRA return, which will be subject to taxation. We will not withhold taxable amounts.


An RRSP transfer allows you to transfer funds from your existing Self-Directed RRSP (SD-RRSP) into a new account that we will set up and administer through the Canadian Workers Co-Operative Federation (CWCF). This process is a little more complicated because you will request and receive a new SD-RRSP account into which you will transfer the amount of cash agreed to in the Preference Shareholder Agreement that you signed as a first step. The main advantage to the SD-RRSP option is that the 5% annual dividend stays tax free inside the RRSP and is not subject to taxation until you redeem the funds.


Q10. I already have a CWCF SD-RRSP. Can I purchase shares and place them in my existing account?

Yes. You pay for the shares with a cheque and the shares are then registered inside your account. You must have available RRSP contribution room as determined by the Canadian Revenue Agency. As well, your total number of Barn Co-op shares must not exceed 199 ($19,900.00) .


Q11. I purchased $5,000.00 worth of shares utilizing cash. Now I have a new SD-RRSP into which I have transferred $10,000.00 from my existing RRSP. Can I flip my previously purchased $5,000.00 worth of shares into the new SD-RRSP to take advantage of the tax break?

At the moment, no. We may introduce this as an option at a later date.


Q12. Can I purchase shares directly from my new SD-RRSP?

No. This option is not available at the moment. All funds for shares purchased must be transferred from an existing SD-RRSP into your new SD-RRSP.


Q13. Can I purchase some shares now through the RRSP option, and some later through a separate transaction?

Yes, as long as the total number of shares does not exceed 199 (valued at $19,900.00). This is a restriction placed on all Co-ops by the CRA.


Q14. Are owners of Preference Shares liable for any costs in the case of bankruptcy?

No. The Barn Co-operative Network Inc. has Directors and Officers, Liability, and Equipment Insurance.


Q15. Can my annual dividend be paid in shares rather than cash?

We are working on creating the option for investors to be paid in shares rather than cash so they can re-invest in the Barn Co-op. You will be advised when this option is implemented.




Q16. I have more questions. Where can I get additional information?

Please contact Clark at thebarncoop@gmail.com or call 519-379-3392 to arrange an appointment to explain the process further, answer your questions, and complete the paperwork.